Answers GalliWCA 2221 CivicsEconomics 1st nine weeks 26-27 Introduction to MacroeconomicsQuestion 8

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Introduction to Macroeconomics

Question 8 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

In this scenario, what is the Fed trying to do by increasing interest rates? Check all that apply.

Answer

A

decrease the amount of money that banks have to lend

B

increase the money supply for banks

C

reduce the amount of available credit

D

discourage consumer borrowing by increasing interest rates on loans

E

encourage banks to loan more money

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